Biopharmaceutical Company to Expand Existing Facility in San Diego

PR Newswire On Nov 8, 2005
Source: via NewsEdge Corporation

SAN DIEGO, Nov. 7 /PRNewswire-FirstCall/ -- Favrille, Inc. (Nasdaq: FVRL)
today announced that it has signed an amended lease agreement to expand its
existing facility to support commercial-scale manufacturing of FavId(R), the
Company's lead product candidate currently in a Phase 3 clinical trial for the
treatment of follicular B-cell non-Hodgkin's lymphoma (NHL). This
80,000-square foot facility will be devoted to manufacturing and is intended
to give Favrille the capacity to produce FavId to meet commercial needs while
continuing to support additional clinical trials. In addition, the Company
has committed to lease an adjacent 48,000-square foot facility to house
Favrille's corporate headquarters and research and warehousing operations.

(Logo: http://www.newscom.com/cgi-bin/prnh/20031013/LAM095LOGO)

"We anticipate that the capacity of our expanded facility will be
sufficient to supply FavId for up to 4,000 patients per year," said John P.
Longenecker, Ph.D., President and Chief Executive Officer of Favrille. "This
expansion represents a significant milestone in our transition from a clinical
development company to a commercial franchise. We expect to finance our
facility expansion through landlord improvement allowances and traditional
debt without the need to use equity to finance this project."

The current estimated cost of the expansion for both facilities, including
equipment, is $24 million, of which up to an aggregate of $11.2 million will
be provided by the landlord in the form of a tenant improvement allowance.
The Company expects to finance the additional capital expenditures of
approximately $13 million through debt financing. Commencing in
February 2007, lease expenses for the existing facility will increase from the
amounts set forth in the original lease agreement. The lease expenses for the
headquarters facility will be phased in during 2006 and 2007. In mid-2006,
the existing letter of credit between Favrille and the landlord will be
increased by approximately $2 million. Unless earlier terminated, the lease
will expire on June 30, 2025.

Favrille continues to manufacture FavId in its existing facility to
support its ongoing Phase 3 clinical trial. The Company expects to complete
patient enrollment in this pivotal Phase 3 trial by year-end or soon
thereafter.

About Favrille, Inc.

Favrille, Inc. is a biopharmaceutical company focused on the research,
development and commercialization of targeted immunotherapies for the
treatment of cancer and diseases of the immune system. The Company's lead
product candidate, FavId, is based upon unique genetic information extracted
from a patient's tumor. FavId is currently under investigation in a pivotal
Phase 3 clinical trial for patients with follicular B-cell NHL and Phase 2
clinical trials in other B-cell NHL indications. The Company is developing
additional applications based on its immunotherapy expertise and proprietary
manufacturing technology, including a second product candidate, FAV-201, for
the treatment of T-cell lymphoma.

Statements in this press release that are not strictly historical in
nature constitute "forward-looking statements." Such statements include, but
are not limited to, references to the manufacturing capacity of the expanded
facility, the expected cost of the facility expansion and financing of such
costs, the extension of the amended lease agreement to include the Company's
proposed new headquarters facility, and Favrille's product candidates,
proprietary technologies and research programs. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause Favrille's actual results to be materially different from
historical results or from any results expressed or implied by such
forward-looking statements. These factors include, but are not limited to,
risks and uncertainties related to the Company's ability to obtain debt
financing for the facility expansion in sufficient amounts and on acceptable
terms, if at all; the ability of the expanded facility to supply FavId for up
to 4,000 patients per year; progress and timing of clinical trials for FavId,
including potential delays in patient enrollment; difficulties or delays in
development, testing, manufacturing and marketing FavId or Favrille's other
product candidates; Favrille's ability to obtain marketing approval for FavId
or Favrille's other product candidates and the timing of any such approvals;
risks associated with achieving projected operating metrics and financial
performance or the anticipated number of patients using FavId; Favrille's
ability to obtain additional financing to support its operations; and
additional risks discussed in Favrille's filings with the Securities and
Exchange Commission. In addition, conclusions regarding the safety and
efficacy of Favrille's product candidates cannot be made until the results of
future clinical trials of longer duration in more patients are known. All
forward-looking statements are qualified in their entirety by this cautionary
statement. Favrille is providing this information as of the date of this
release and, except as required by law, does not undertake any obligation to
update any forward-looking statements contained in this release as a result of
new information, future events or otherwise.